Genzyme sees sales, profit growth

TedGriffith

CAMBRIDGE, Mass. (CBS.MW) -- Genzyme Corp.'s primary division Friday reaffirmed its 2001 earnings target and said strong sales of a kidney dialysis drug could drive revenue up by as much as 20 percent.

The Genzyme General division said it expects earnings of between $2.25 per share and $2.35 per share for 2001, which it said is consistent with its previous forecast. Genzyme General is expected to earn $2.29 per share, according to an average estimate of analysts polled by First Call/Thomson Financial.

For 2001, Genzyme expects revenue to exceed $900 million, compared with $760 million last year. The company said revenue growth is being fueled by strong sales of its Renagel product, which is used in the treatment of patients undergoing kidney dialysis. Genzyme said it expects Renagel sales to rise to between $110 million and $120 million, compared with $56 million in 2000. Genzyme said it expects sales of Cerezyme, a treatment for a rare genetic illness called Gaucher disease, to increase to between $565 million and $575 million compared to $537 million last year.

But the Cambridge, Mass.-based biotechnology company also forecast rising expenses, as it boosts research and development spending. Genzyme said it expects R&D costs of between $155 million and $165 million for 2001. Genzyme has yet to disclose its R&D spending for 2000, but the company did say the 2001 level will represent an increase. Genzyme has already disclosed its revenue performance for 2000, but a full financial report, including bottom line results, is not expected until March 8.

Looking beyond 2001, Genzyme said surging Renagel sales could fuel annual earnings growth of as much as 30 percent, compared with the company's previous level of 20 percent annually.

"Our new driver is Renagel, which has blockbuster potential and which is already raising the growth rate of the company," Henri A. Termeer, chairman and chief executive officer of Genzyme Corp., said in a statement.

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